PNC Infratech stock jumps 7% as its subsidiary settles dispute with NHAI

PNC Infratech shares surged up to 7.1 per cent at Rs 555.50 per share on the BSE in Monday’s intraday trade. The stock prices zoomed after the National Highway Authority of India (NHAI)and PNC Kanpur Highways, a subsidiary of the company, agreed to settle the amount of Rs 398.60 crore under the 'Vivad Se Vishwas Il (Contractual Disputes)' Scheme of Government of India.

The company on Friday reported that it has secured a an amount of Rs 390.62 crore from National Highway Authority of India (NHAI) out of the total settlement amount.

The company reported a consolidated net profit of Rs 395.89 crore in Q4 FY24, steeply higher than Rs 145.98 crore posted in Q4 FY23. Revenue from operations grew by 12.81 per cent year on year to Rs 2,600.15 during the quarter

EBITDA surged 79.08 per cent to Rs 736 crore in the March quarter as against Rs 411 crore posted in Q4 FY23. 

On a full year basis, the company's consolidated net profit jumped 38.11 per cent to Rs 909.42 crore on 8.72 per cent rise in revenue to Rs 8649.87 crore in FY24 over FY23.

Those at ICICI Securities said that PNC has suffered on the order inflows due to a bump in the road in bidding in FY24; the sector has suffered too. 

That said, PNC has maintained strong execution. The company’s top line remained flat in Q4FY24, at Rs 21 billion, while its EBITDA margin expanded 290 basis points YoY to 16.2 per cent  in Q4FY24, analysts said

“Given the strong bid pipeline of Rs 2.5 trillion for FY25E, as of Mar’24, the company expects healthy order inflow (OI) during the same period. PNC guides for 10 per cent revenue growth with an OI target of Rs 100 billion for FY25. We expect the bidding to pick up in FY25E, post general elections in Apr-Jun '24. It is monetising its 12 projects in 2 phases, which shall bring in equity of INR 29 billion,” analysts at ICICI securities wrote in a recent report. 

The brokerage resumed coverage on PNC with ‘ADD’ rating and a target price of Rs 581 per share.

At 02:33 PM; the stock of the company was trading 5.42 per cent higher at Rs 545.50 per share on the BSE. By comparison the S&P BSE Sensex was up 3.13 per cent. 

PNC Infratech is engaged in infrastructure development through the construction of highways including BOT (built operate and transfer projects) airport runways, bridges, flyovers and power transmission projects among others.